Chart USD/JPY Update: Choppy trade - immediate gains to remain limited
The anticipated break below 158.00 has bounced sharply from 157.50 in both USD- and JPY-driven trade
| Levels | Imp | Comment | Levels | Imp | Comment | |||
|---|---|---|---|---|---|---|---|---|
| R4 | 160.40 | ** | April 1990 (y) high | S1 | 158.00 | * | break level | |
| R3 | 160.00 | ** | historic congestion | S2 | 157.50 | 19 Mar low | ||
| R2 | 159.75 | ** | 13 Mar YTD high | S3 | 157.00 | congestion | ||
| R1 | 159.00 | * | congestion | S4 | 156.45 | * | 4 Mar low |
Asterisk denotes strength of level
13:25 GMT - The anticipated break below 158.00 has bounced sharply from 157.50 in both USD- and JPY-driven trade, with focus turning back to congestion resistance at 159.00. A test cannot be ruled out. But negative daily readings should limit any immediate break in renewed selling interest/consolidation beneath strong resistance at the 159.75 current year high of 13 March. Broader weekly charts are positive. But a close above the 160.40 year high of April 1990 is needed to turn sentiment positive and confirm continuation of long-term bull trends. Meanwhile, break back below 158.00 should give way to consolidation above congestion around 157.00.